Reddit Posts
Canadian government gets tough on exchanges. Long post
aren't you worried about the capital gains tax on crypto?
so i did my crypto taxes today and.. yeah.. it's uhh not looking great.. please advisze on a scale from 1-to-complete-and-utter-financial-ruin exactly how much trouble i might be in with these numbers (experts on canadian crypto taxes this is your time to shine)
Pattie Lovett-Reid: CRA is watching cryptocurrency trades. Here's what you need to know
Pattie Lovett-Reid: Trading in cryptocurrencies? Beware the CRA is watching
Canadian Taxation? How does CRA classify if I am a business or for capital gains?
Mentions
I've wondered this for some time now. If I invest 100$ in a token, and it goes insane, and I take my initial investment out of 100, do I get capital gains tax on that? Even though it's not technically profit? I'm in Canada, so CRA are always eager and ready to fuck you up
Be careful, CRA is watching you👀 they will fight tooth and nail to extract any pennies from you while their own employees steals CERB money
Is it about real estate. I helped these scammers design web portals. If you make a certain amount of money and invest over 10k with kiwosaki they will help you setup a mini real estate empire where all you'll have to do is collect rents. They also have the ex head of the CRA working for them helping the wealthy with ways to avoid paying taxes.
log into ur CRA account and see whats ur TFSA limit ... ets say if its 40k , U can buy 40k worth of BTC ETF ... u can also buy same ETF with ur RRSP account ... if u are u can also use ur FHSA account as well , they all have limit depending ur age ...
No matter where you sell the BTC in Canada, the CRA will expect you to pay tax on 50% of your capital gains. That is, half of your capital gains will be included in your annual taxable income. If you simply transfer the BTC to another wallet, it is not considered a taxable event.
Every province regulates lottery and gaming differently, but one thing that is common to them all is that any "lottery" requires a registered lottery or gaming license number. There is absolute no chance that your "raffle" with only one ticket is going to qualify. What you are describing would be seen as a gift or dispersal in the eyes of the CRA and you would owe tax on any gains to the asset value since you first acquired it. The person you give it to would not be responsible for any tax until they themselves dispersed the BTC and they would owe tax on the gains from the asset value on the day they recieved it. Canadian capital gains are taxed on 50% of the net increase in value at your nominal income tax rate.
Not sure the CRA cares much what you call it. Maybe they never catch on because you only sell small amounts, maybe they do.
Im guessing they would have froze it just the same in my situation. Your local laws play a part too. Here in Canada 10k triggers a notice to the CRA for tax purposes. The bank will do whatever they need to on their part for w.e fraud/laundering policy they have in place. I think your account history should give them enough to work with before freezing all your accounts like they did mine. Ex: If I have sent 30K to a crypto account and one day I take back 5K...that shouldn't be an issue I would think... If I sent 3K and one day try to take back 800K...I would understand them freezing my account.
Addresses are not needed for filing taxes, but you are supposed to keep track of such things as part of your records in case CRA asks
Truth is, you don't have to tell them your crypto addresses. It's completely normal to convert your crypto to cash via the exchange first (like Wealthsimple does if you want to withdraw). When the money hits your TD account, it just shows the exchange name, like "Wealthsimple" for example, not "BTC, ETH, LTC" etc. So the bank has no idea which coins you sold to get the cash you're now depositing. CRA can audit you for those details. The bank cannot. They can ask where the money came from for sure. But you don't have to disclose the specific wallet addresses. Just share the basic exchange info. If it helps, when you hold your money on an exchange, you don't technically have your own wallet address anymore anyways - that's the exchange's hot wallet, not yours. So you wouldn't be able to give them an address anyways. If they're asking for external wallets you've used to fund the exchange? That's over reach. CRA can audit at that level but the bank would have to subpoena the exchange just to corroborate that you didn't just buy crypto on the exchange instead of transferring crypto from an outside wallet. Good luck! I've been holding since 2013 and don't plan to ever sell. I either shop directly in crypto or not at all so this can't happen to me. But it's good to hear what people trying to cash out are dealing with.
I would be more concern if they will be forwarding that info or being told to forward that info to CRA? Or is it just for their own records and verification? Does any bank needs to report to CRA when a large deposit kicks in?
Lol guessing you didn't read the whole thing? Not worried about CRA, I knew id pay tax on that 5k and was ready for it. My tax guy already knows about my crypto and I track my buy/sells for that exact reason, do you think... In a era swarmed with phone scams... That your bank should be calling you on the phone and asking for your wallet address and where you store your crypto? They are handling it very poorly is my point. Maybe the bank should be more professional and educated with how their staff handle these calls. Am I above the law? No... What do I look like a politician?
Do you think you're above the law? In your years of being a cryptobro, have you ever given any thought as to what would happen when you cashed out or were you too focused on the mantras of decentralized exchanges, currency debacement, block chain.... spewed out on crypto websites and blogs. Here's food for thought, what's going to happen when TD reports this transaction to the CRA? Act in defiance? Both your bank and the CRA will probably want to know what you own. For now, you'll have to prove to TD that you've earned this income legitimately.
Not too sure im guessing same thing. But I know in Canada 10K transactions immediately get reported to CRA. (ive also heard anything just below also gets flagged)
(Wouldn't *?) yea end of the day i dont have anything to hide and im sure if it came down to it CRA can access whatever they want. For me its the questions about the address and where im currently holding that pissed me off.
To my knowledge with CIBC and heard similar from ScotiaBank as long as the deposits are coming from regulated crypto exchanges that are Canadian based they couldnt care less. Youre bringing the bank cash back in from a legally fully regulated exchange wtf do they care for. Taxation is another story so if you're flagged by the CRA you are supposed to know about it too it can't just stay in the shadows so idk what ur bank is doing
Yes, but not for the reason that anyone else is saying. In the short term, capital gain tax will apply 100%. No government is going to get rid of it. However, certain bitcoin protocols allow for increased privacy and self-custodied bitcoin requires that the seed phrase is actually given up. This makes enforcement of the tax law significantly more difficult. Don't get me wrong - this will be a long battle. The IRS, CRA, ATO, HM Revenue, and every other tax authority are well invested into tracking cryptocurrency transactions of all types. Most people have followed very stupid privacy practices. They gave up their identity when they purchased the bitcoins, and they stored them in a wallet with no privacy at all. Or they kept them on the exchange itself and didn't even self-custody. These are easy to tax. However, over time, those who employ better privacy and self-custody will have a financial advantage over those who do not, and there is a certain point in which going after someone for tax is cost prohibitive. The other angle is the legal angle, in which people can set up shell corporations or offshore their bitcoin in ways that they can avoid tax legally. This is possible in ways that can't be done with other assets like real estate, stocks, etc... At the same time, you have a government which presently heavily depends on funding that comes in no small part from the printing of money. The government spends more than it pulls in through revenue, often by a significant amount. Every year, the law book grows, new promises are made, new services added to the growing burden. So every individual who holds bitcoin is harder to tax, and can't be robbed through inflation, and that's increasing. At the same time, the burdens that government needs to pay through tax or inflation are increasing. At some point, the system as it stands becomes no longer viable. It can take a very long time, but eventually it has to collapse. And when it does, capital gains as measured against a fiat currency will with it.
You're not the only customer taking profits. The bank want you to deposit as much cash as possible to them - they can loan out $9 for every $1 you deposit. Like I said, your concern with the bank is misplaced. Focus your attention on understanding tax law, and what your tax authority (CRA) needs you to declare on your tax return.
"The Canadian Revenue Agency (CRA) treats cryptocurrency as a commodity subject to capital gains tax and income tax. 50% of capital gains and 100% of income from cryptocurrency is considered taxable."
So I buy my crypto on Wealthsimple which is basically the biggest stock exchange in Canada, I do this because crypto exchanges have been hacked in the past and with Wealthsimple my crypto is insured and a lot more safe. But because it's on Wealthsimple my account is registered with the CRA so if they look into it or audit me they will see it's a gain. But now I'm curious because you mentioned it, if I have let's say 100k in capital gains on my crypto and instead of selling it I transfer it to an external wallet(which I can do from Wealthsimple), does that count as selling/a taxable event? I understand the premise of selling it to another person, but transfering to a wallet would most likely be on record with the amount of capital gains I had during the time of transfer? Hmmm
Capital gains made on investments generated outside of Canada if its not in your Canadian trading account/portfolio is fully out of the jurisdiction of the CRA. Tons of exapts will use their local ID card and open new bank accounts and exchanges its fairly common to also be a dual citizen those individuals are not paying taxes or even claiming it its out of the CRA reach to start with. We are similar to the UK in this matter not USA
That’s not true, you can definitely trade in RRSP accounts, just not in a TFSA. RRSP money is tax deferred, not tax free; you still pay taxes on withdrawal, so CRA would love you to grow it as big as possible really.
Yep, all good points. On prior halving cycles (before spot ETFs here in Canada) I could only buy GBTC in my non-registered account, which led to a few big tax bills (GBTC was ineligible for TFSA/RRSP). I made some of it back on currency re-conversion, but that was just random luck. Another scenario to consider: If you sell at a profit and re-buy again all while still remaining within your TFSA/RRSP, then you don't trigger a taxable capital gains event like you would outside it. That means you won't owe a bunch of money to CRA if your investment happens to be non-liquid (maybe even underwater) when their payment is due during tax season. Peace of mind for folks who like to trade a bit. Caution: You can't day-trade in tax-advantaged accounts, but you can buy/sell a reasonable amount. Whatever CRA determines that to be...
I have so many questions around this. * Do you declare your income and pay income tax? * Does your employer file that they paid you with the IRS or CRA? The libertarian in me says that we should just be able to trade our time, labor, and expertise with anyone we wish without the state being a party to it. But the realist in me recognizes the difficulty with that. I think that Bitcoin is a ***far*** more disruptive technology than most people (even Bitcoiners) have any idea. It is literally anarchy money. It represents a truly free market economy. The old institutions will not go quietly into that dark night.
Not according to CRA, which is what matters in this example. Your allowed to travel as much as you want, but residency has specific definitions and people get clawed back all the time if they don't do it right.
right so OP can just pay the CRA and tell the IRS to fuck off huh
This is correct, CRA also has a built in tool that you can enter wallet IDs and it will check transactions for the year to determine the tax years PnL. 50% of your profit is included into your income for income tax purposes. So if you profit 3,000 and you made 70,000 from your job, you would be paying taxes for an income of $71,500
Koinly is what I used last year too. Made everything very easy. I’m not looking to get got by the CRA.
Not sure how it works in the US, but in Canada the recipient would be responsible for gains on the increase from receipt until disposition. But I believe the Gifter must pay capital gains on any increase in value from the original buy until the gifting of the asset, as a gift is considered a disposition in the eyes of the CRA.
Not if it’s your own wallet but sending it to anyone other then yourself for any reason triggers a taxable event. That includes spending it Wich the CRA considers a barter transaction and subject to capital gains tax.
Yea at this point I’m just going to redeposit the crypto into the gambling site. I think it is down like a couple dollars since I withdrew it so it should be a loss and I can avoid the tax situation all together. You are right that I’m obviously not too knowledgeable and can get myself fucked. But I never intended to hide shit from the bank as a means to avoid the tax man, I don’t think the bank is the tax man. I don’t care about the CRA finding out, nor would I try to hide shit from the CRA. It was just about the bank itself not finding out that I’m online gambling. Sorry for the attitude man, take care.
My only suggestion is realizing that registration means regulations. Exchanges that are registered are under jurisdiction to comply with regulations. Banks are registered and regulated. Bitcoin is not a registered entity. Getting bitcoin can even be difficult from banks because they are regulated. Putting money back in a bank that is regulated is going to notify other government agencies like CRA. You may be fine with filling a capital gain. CAD is an issued currency by regulated agencies like CANADA government BANKS or however else that matrix works im not really sure who. The fraud is where we are registered to CANADA as if we can be owned. If anything it should be a type of allegiance to country not jurisdiction.
Cost effective except for the capital gains tax you may owe to CRA.
>Linux is the most used OS in the world. And it has never cared whether or not YOU got it. I'm in the IT business and manage a hosting cluster. I am pretty sure I know that. But you really are missing the point, aren't you? ​ >The desire for immediate conversion from Bitcoin to fiat proves the merchant is only accepting Bitcoin as a marketing stunt. Maybe it's a marketing stunt. Or maybe they are responding to customer demand. Or maybe they want to help "normalize" the use of Bitcoin while still staying on the right side of the CRA. Who knows. In Canada and in the US you cannot run a 100K/year business and not pay income tax, etc. ​ >No thanks, in that case I prefer to pay in my rapidly depreciating dollars. I can figure out how to convert my bitcoin into fiat to pay on my own (easily, instantly) if there is something I need priced in fiat. This whole discussion just highlights how disruptive Bitcoin really is. Bitcoin is anarchy money. It is essentially a complete decoupling of the state from money. For 1000s of years states (kingdoms, empires, etc.) have issued money. Bitcoin signals the end of all of that. The purists cannot fathom why anyone would want to merge the system of state-less digital gold with a state-governed system of worthless fiat. And I understand that. But in the meantime, we have businesses to run and bills to pay. Personally, I don’t plan on ever selling my Bitcoin. It is my post-apocalyptic society-has-collapsed money. In the meantime, I continue to do business (and pay my bills) in fiat.
>Simple then, tell your friend not to accept bitcoin. If it's such a headache that you need to pay a 3rd party to come in and basically steal from your profits then what's the point?If I was your friend I would accept bitcoin with the software I said and then pay the employees out of my pocket with my own fiat.If you guys understood how bitcoin worked you'd realize that accepting bitcoin is basically gaining non KYC bitcoin essentially. This response is part of the reason why bitcoin adoption is so low. It reminds me of the Linux evangelists that used to tell people to run "ditch evil Microsoft" and "switch to Linux". But then when someone asked, "how can I use my printer" they would say something like "fine, if running Linux is too much trouble just stick with Windows". See, we are stuck between a rock and a hard place. Bitcoin is basically anarchy money. And that is wild. But in the meantime, businesses are not going to risk getting into huge trouble with the CRA or IRS for not declaring income. People go to jail for tax evasion.
>government is having more educational programs announced this year. Are you talking about the upcoming Crypto classes in computer classrooms (CRA) filled with 2005 era HP Compaq computers?
>they refused to comply with regulations that were meant to protect consumers Binance wasn't segregating the users funds as per the CRA's request which made it impossible to determine what was taxable.
Hi IRS / CRA! How was your week?
This. I saw a regional bank trying to 99 year lease a big swath of city land. Under their CRA projects. Just so the CEO could build a giant hunting ranch for his buddies, and sell the CC to clients. Under the guise of helping the poors ofc.
Exactly. As an example the canada revenue agency purposely audits taxpayers convicted of criminal behaviour and then estimates, if necessary, the amount of income they believe the taxpayer has earned as a result of the illegal activities. For the purpose of taxation CRA is indifferent as to how a taxpayer earns the business income, or what business is carried out. CRA is only concerned with whether the income was reported, as required by tax law. Supposedly if you claim illegally gotten gains the CRA will not share that information with the police or other departments.
I used Koinly. It spit out all my transactions and litteraly filled out the form i needed, and i handed it to my accountant with the rest. Im not sure if its perfect or if something could be missing, but i feel like the CRA will be far more understanding if they see i made an effort to file it in my taxes rather than chose to omit (if ever i were to get audited). I also am not a trader. Think i had close to 400 transactions according to Koinly
Yup for Canadians too the relevant Canadian watchbody aka CRA
Yea CRA is eating good after reading this comment
I took a shit the other day, opened the door, CRA employee is already there waiting. He whispered in my ear "tax". It is bullshit moving from one worthless token to another is taxable, no fiat currency or anything spendable has been done. Should be taxable event when it's spent, goes to fiat, etc.
CRA can figure that out themselves 💀
Here are a few points on the issues you raise: While having an account on an unregulated exchange is not explicitly illegal, margin trading crypto as a Canadian is legally dubious at best, given bans by Canadian securities regulators. With no KYC, the unregulated exchange has no obligation to report your activity. But this does not exempt you from declaring tax obligations to the CRA if you profit. If the CRA audit you and determine the gains came from illegal margin trading, you could face penalties and prosecution. This is very risky. Using a VPN to obscure location is not advisable as it violates exchange terms and further raises legal concerns. Since you have no legal recourse offshore, potential losses or hacks put your capital at serious jeopardy with no protection. Consider if small potential upside is worth the regulatory, tax and security risks. Registered exchanges like FTX offer limited leverage products legally. In summary, while the chance of detection may currently be low, engaging in banned trading practices offshore exposes you to substantial long-term risks. I would caution strongly against it given the precarious legal territory.
Just a note, you have to be careful on how you use your TFSA. It's more meant for regular buy and hold and not for trading frequently. You risk CRA disallowing all your tax-free gains if they determine you as "carrying on a business". From my understanding you can use your RRSP account instead to make these trades. Here's a couple links for your reference: [https://www.advisor.ca/magazine-archives\_/advisors-edge\_/advisor-learns-the-hard-way-that-tfsas-are-not-for-frequent-trading/](https://www.advisor.ca/magazine-archives_/advisors-edge_/advisor-learns-the-hard-way-that-tfsas-are-not-for-frequent-trading/) https://www6.royalbank.com/en/di/hubs/investing-academy/article/frequent-trading-in-your-registered-accounts/kp1bu4tc
Tax free eth and btc is fucking awesome 👌 my TSFA will be maxed soon with both and I bet the CRA hates it haha
Regionals are stealing your money and bloating their private CRA funds with it.
That's their own fault. Their own decision, I shouldn't have my " risk level and spending limit" assessed by the CRA because uncle John lost his pension on elondogomooncoin or gave his keys to a scammer. This isn't protecting anyone. It's controlling every one while making seem like they're looking out for us.
It's entirely different. The SEC is arbitrarily attacking crypto wholesale, the CRA wanted the exchanges to prove that they had the liquidity they claimed they had to survive a bull run, and that they weren't using individual's portfolios to invest elsewhere.
In Canada BTC is a commodity and you are required to self report cap gains/losses and adjust your cost basis whenever you make a purchase with it, same as if you sold. Will the CRA come after you? Unlikely, especially if you didn’t hold long between purchase/sale, and there’s no gains to speak of.
In Canada they use the non cash barter commodity transfer tax law. So if someone trades say firewood for honey both parties are supposed to report the value of the transaction to the CRA. Theyre applying those laws to crypto.
Because they’re already forcing out all exchanges that are unwilling to steal from user accounts. Binance is pulling out of Canada, most of the other exchanges that are staying have limited capacity but declare all your trades to the CRA. A big part of “Canadians are fucked” is that they froze accounts of any citizens involved in the protests last year. So you tell me, if the government can freeze your crypto whenever they want, how exactly are we not fucked? Surely CSEC won’t just fuck you over and get access to your wallet.
They only allow a certain amount but I'd You've never contributed before, that amount today is around 76k Cad (people would have to check CRA website for amount)
The main reason *any* country would implement CBDC's is surveillance. I imagine the CRA is salivating.
It's possible that CRA's own legislature did "regurgitate" this information themselves for further clarification due to the original way people misunderstood what it is they were trying to do. Was a mistranslation from day 1, but it was NEVER "legal tender", accepted, etc. It was only made reference currency and legal to use. Still... Literally ZERO change from their original legislation.
Late to the party with this one, but voting systems besides government elections. If a blockchain were to develop a voting platform that was easy to access, any old company or group that wanted to could open a vote for any issue. This could be done using zero-knowledge proofs to avoid any controversy associated with transparency; the vote threshold for an issue is set at the beginning and then while the votes are counted on-chain, nobody sees how many votes there actually were, just whether or not the movement passed. Or it could be done with complete transparency, or an option to choose. The CRA is going on strike right now and claims that members voted for it in overwhelming majority but won't make the numbers public. There is doubt and controversy about this. A zero-knowledge voting platform would allow for trust in the result while still maintaining their desired opacity.
Don't worry! The CRA needs your SIN, or they'll send the RCMP to pick you up!
I can’t speak for all countries, but that’s incorrect in the US, and it’s not how it is in most places. Day trading is typically taxed as short-term capital gains, which is taxed at the same rate as ordinary income, and that rate varies. Frequent day trading May classify you as a trader, which is taxed differently. Are you from Canada? The CRA treats day trading as a business, but only under certain conditions.
I suspect that the subtle message is to let degens know that H&R block is familiar with crypto. So when it's time to do taxes, if you have crypto, you might want to go talk to them for assistance. A lot of professional accountants in Canada have been completely overwhelmed when clients asked them questions about crypto. It's getting better, but a few years ago, before the CRA gave any guidance, a lot of clients had to spend a lot of time educating the professionals about the characteristics of crypto.
And don't forget that the reason they deregulated the derivatives market was because there would have been no other way to sell the junk bonds they mandated with the CRA.
Dr. Sr. Papa Powell doesn't believe raising interest rates is enough, now he's convinced the NSA FBI CRA CIA CDC to dump their biti-coins on us.
Wow papa powell doesn't believe raising interest rates is enough, now he's convinced the NSA FBI CRA CIA CDC to dump their biti-coins on us.
Well, CRA and IRS can play their little games. I don't care. The facts are that the tokens are 0 and that I don't live in the USA.
Not according to the CRA and IRS. Check there detailed guides on crypto it’s all public information.
I'm thinking of putting 500$ into two crypto game tokens. If they blow up and accumulate a quarter of the market cap of Axie Infinite at its 2021 ATH, they might be very profitable. Those two tokens are Crabada (CRA) and Blockchain Monster Hunt (BCMC), Crabada plays similarly to Axie infinite and BCMH is basically a pokemon clone. The thing is with those games, they both got released on the end of 2021 and they never really cought on because it was the end of the bull market and Axie infinite had basically overshadowed them. So they never really got their chance to shine.... They might blow up in the next bull market, who knows and 500$ is not gonna kill me. What do you guys think?
Sir I'm saying similar tax rules apply. CRA counts any kind of rewards as taxable, staking, delegating, air drops..
Do you mean not report it for tax purposes? Bruh, CRA will get you every time. 😂 Just pay your taxes, people.
I'm like you, don't do many txns, so I just track them in a spreadsheet. I record: What exchange Date/time the CAD price at the time of purchase the amount of the crypto the CAD amount of the crypto fees recorded in the crypto currency whether it was a buy or sell If it was a transfer directly between cryptos, I include: amount of the crypto currency being transferred from amount of the crypto currency being transferred to The main thing for crypto on Canadian income taxes is that the CRA treats any crypto transactions as capital gains / capital loses. Also, if you're only buying crypto and holding it, you don't need ot record that on income tax. Only when you sell it back to fiat currency or transfer it to another crypto currency. Selling and transfer is where you have profit or losses. How stocks and bonds are recorded on income tax. Except with crypto you have to track it yourself and also pull the report that the crypto exchange should have.
100%. It needs to be less sketchy to investors and regulations are the only way. Not too much though. Don't want the CRA asking about my moons. Lo
Exactly. As a Canadian, I fully embrace this. Better regulation means more likelihood of acceptance by the CRA and banking sector, which means better integration with our outdated fiat economy. And it means less uneducated people getting scammed, which ultimately benefits everyone. Crypto's reputation is bad right now due to scams. We need to change that.
Sorry bud still a tax event....Revenue Canada cares that you bought 2$ worth of Spanish beer with 8yr old BTC because your in profit, the sale triggers a tax event and CRA needs it's pound of flesh. Your better plan is HODL that 8yr old BTC, purchase just enough SATs immediately before spending those same SATs....still a tax event but no gain therefore no tax owed.
That's not how it works, you pay capital gains tax on 50% of the profit, you don't pay 50% of your profit. If you are going to speak about Canada, at least be correct. Source: CRA website https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4037/capital-gains.html#whthppns
Pretty sure CZ/Binance pays taxes. Regardless, CRA likes to go after small companies/people who are easy targets.
CRA should go after CZ, I heard that he is a Canadian citizen..
What makes you say that? Because you haven’t been audited? That obviously doesn’t mean they don’t care/aren’t trained. The CRA has stricter crypto trading rules than the US. For example, wash trading is not permitted (you can do it but it won’t be counted as a loss unless you wait 30 days to buy back), you must use the ACB accounting method, if you buy just to lower your cost basis but then sell within 30 days then that <30 days purchase does not count towards your cost basis, etc. It’s ridiculous.
I used to work for the CRA and specifically I worked processing review. This is normal. They review specific fields most charitable donations, medical expenses, union dues,etc. I have worked there and also been reviewed. Worse case they claw something back plus interest. CRA is so compartmentalized that only specific departments review specific fields and one wouldn't care what the other is doing.
Jeezus....buying and selling are tax events....if you profit during a tax event you owe taxes on the profit if you take a loss you may declare it to reduce taxes owed. The IRS/CRA have no jurisdiction to look at "holdings" ....so why would you offer them one. You bought BTC 2 yrs ago....great note the quantity and price.....you sell it for a profit in 10yrs....file your taxes based on that gain.....you do not tell the .gov how much you hold in the interim between those two events.
TL;DR. Canadian CPA, currency pairs exchanges in BTC are treated as taxable events regardless of it being Fiat or some other crypto. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ CPA here from Canada, and Bitcoiner so I'll take a shot. When it comes to taxes, Bitcoin (like any other non registered asset) only needs to be reported when there is what is known as a deemed disposition. Under CRA rules a deemed disposition occurs when an exchange of value occurs, this implies trading of one asset for another or when exchanging Bitcoin for a good or service. For a quick math example (easy numbers): You purchase $100 of Bitcoin. This is your cost basis. While I don't encourage it, you later exhange all of this Bitcoin for another pair (fiat or other crypto) at a value of $200. This is a $100 capital gain ($200 - $100). Of this gain, only 1/2 is taxable, therefore of the $100 gain you made, $50 is tax free the other $50 is subject to tax. If your going tax rate is for example 30% in Canada then you will pay $15 in tax ($50 taxable x 30%). To be onside with the CRA you need to be sure to sure to report all exchanges of value including any BTC pairings. The way to do this is by taking the CAD value of the exhange. The proper way is to do this on the date of the exchange pair (I've done it for peers, it's a PITA), or the easy way (take an average exchange rate over the entire tax year). Hope that helps.
The CRA has a cryptocurrency tax guidelines document on their website
This is the way. Just send an e-transfer to Shakepay or Newton and it’s there instantly. FYI, you will need to KYC yourself to be compliant with the CRA. It means whatever platform your use will need to verify who you are. This process is standard unfortunately.
I hate to be cold water here, but this actually shows how little you know about what happened. Not to say that mistakes were not made by the financial sector, but there was a whole lot more moving parts in that than was actively advertised by the media. Case in point, the majority of the toxic assets at the core of the problem were mortgages the banks issued that did not meet their underwriting requirements, but were essentially forced to originate as a direct result of the CFMA and CRA enacted under the Clinton administration. Greenspan and the Federal Reserve, along with a healthy dose of Wall Street profiteering did the rest. What most people don't get is although the banks were the 'boat' being bailed out, pretty much every person with money in the bank was a passenger on that craft.
CRA slush funds the biggest thing. Ironically only fractions of your money they take really goes to help poor communities.
You a competitor to CoinSquare or something? Some reason to have a hate on for them? Every Canadian "financial institution" has to share data with CRA - including eBay, PayPal, or any bank, investment firm, etc. CoinSquare is no different than any other exchange operating in Canada. Gotta love KYC! Copies of your most intimate details stuffed into databases all over the effing place. 😡
There's a warning in red on the ATM machine that says CRA and RCMP don't demand payment through Bitcoin. How dumb is this girl? When she withdrew $11k cash from her bank, she didn't once think this is weird? Also these machines have you scan a wallet address and then deposit cash. Article doesn't mention what address she used or how it was given to her. Something doesn't add up.
GFs employee fell for a CRA (canadian IRS) scam; because when you're behind on your taxes it's totally normal for the federal tax authority to make you walk 6 blocks to a bitcoin atm in a coffee shop and transfer $2400 to a random wallet. Now every tax season I make signs for their break room, although I'm not sure anyone who falls for that can read.
Fun fact, both the IRS and CRA (canada) were paid royalties for the use of the phrase “ fuck you pay me” in Goodfellas, wince they hold a joint copyright on the phrase.
But that would be between Stats Canada and the CRA. The bank of Canada is like the US Fed, the primary purpose is controlling the prime interest rate
Any capital gains you make on crypto is taxed, 50% of the capital gains is taxed. If you purchase BTC for 20k and it goes to 40k, you pay tax on 50% of your capital gains which is 10k. Does this make you kind of uneasy about long term hodling and not reaping the full rewards? Crypto isn't a registered security so it can't be held in accounts like a TFSA or Roth IRA that are tax free accounts registered with CRA/IRA. Has to be held in a crypto account. Some people say they will wait until its regulated and eligible for those tax free accounts, but keep in mind that withdrawing your crypto(to my understanding) also counts as cashing out to the government so you have to claim it. Aren't you worried about this affecting long term gains?
A big part of a federally chartered bank's OCC examination pertains to CRA and is generally more stringent than the examinations a state bank is subject to.
cheap to buy most likely. What are the federal charter implications of CRA? A lot I have seen is about state-chartered ones but I've not seen much about federal chartered.
Question is, why would they buy a bank with branches in rural markets if the plan is to create an onramp? Those areas aren't exactly hotbeds of demand for crypto services, and marketing financial services outside the bank's assessment area creates potential CRA issues for the bank. Really the only thing I think makes sense is that the bank entity itself will eventually be dissolved and the federal charter passing onto the surviving entity.
Even mine in Canada? Let me just phone up the CRA and tell them they can't have any.
So u want the gov to propose a mandate to force businesses to onboard crupto despite Canada’s low adoption rate?! I don’t know much more I can emphasize that it is an accepted form of payment in Canada as per the CRA … it’s literally legislation.…. Forcing businesses to adopt crypto wo proper infrastructure governance is… tyrannical… I mean in facts and logic were a brick wall… u sure are talking to one 🙄
Absolutely. CRA and IRS in my case...